Fondo Pensione Previndai, Italy’s industrywide fund for white-collar workers, is seeking to allocate around 10% of its €11bn portfolio to up to nine closed-ended alternative investment funds (AIFs).
Previndai manages its members’ assets in two insurance portfolios and two financial portfolios.
The financial portfolios — balanced and growth — are worth €1.2bn and €700m respectively.
The allocation will be made within the two financial portfolios.
The mandates are:
- One global or European infrastructure equity fund (minimum size target €200m);
- One to three Italian infrastructure equity funds (minimum €100m);
- One global or European private equity fund (minimum €150m);
- One or two Italian private equity funds (minimum €90m);
- One or two global or European direct lending funds (minimum €250m).
The tenders follow the decision by the fund’s board to introduce into its strategic asset allocation an overall share of 10% in illiquid alternative investments, to be allocated to each of the financial portfolios in the following asset classes:
- Global infrastructure equity (1% weighting);
- Italian infrastructure equity (4% weighting);
- Global private equity (1% weighting);
- Italian private equity (1% weighting);
- Global direct lending (3% weighting).
The board has also adopted multi-asset management mandates and broadly diversified market benchmarks.
To be eligible for selection, each AIF must be run by a single manager and its fundraising phase must end on or after 30 November 2018. It must not use financial leverage.
The AIF must be denominated in euros, Previndai said. Alternatively, it said, some instruments of participation must be in euros. This restriction does not apply to the underlying investments.
The investment by Previndai will be limited to 25% of the AIF’s value.
The AIF’s lead portfolio manager must have a track record of at least three years in the management of alternative investments for institutional clients, consistent with those for which the application is submitted.
The tender notice and RFI questionnaires are available on the fund’s website.
Applications close at 12.00pm CET on 4 October 2018.